Restructure mortgage system to check abandoned projects – Expert
Mortgage
By Lilian Okoro
Lagos, June 21, 2018 (NAN) A town planning consultant, Mr Makinde Ogunleye, on Thursday appealed to the Federal Government to revamp the mortgage system to reduce the high rate of abandoned building projects in the country.
Ogunleye, a former Chairman of the Nigerian Institute of Town Planners (NITP), Lagos Branch, made the appeal while speaking with the News Agency of Nigeria (NAN) in Lagos.
He said an effective mortgage system was necessary to aid housing development and boost activities in the building and construction industry.
He stressed the need for provision of credit facilities to assist developers and prospective home owners financially, and that the major cause of abandoned building was lack of funds due to weak mortgage system.
“Traditionally, Nigerians are acquainted with stage by stage mode of construction due to lack of financial/credit facilities and viable mortgage system to assist with the construction costs.
“Worldwide, mortgage is the key to successful housing development. There is no country with improved housing development that does not have an effective mortgage system in place.
“Nigeria has not got it right and may not record remarkable growth in housing development, until a functional and accessible mortgage system is established,” Ogunleye said.
The NITP ex-chairman lamented the rate of abandoned buildings, saying that many properties belonging to the Federal Government and private individuals were suffering from either outright abandonment or under-utilisation.
He said the rate at which buildings were abandoned across the country was high and some preventive measures needed to be taken to discourage the trend.
According to him, such abandoned buildings that costs billions of naira were scattered all over the country, particularly Lagos and have either been taken over by rodents or occupied by miscreants.
According to him, apart from the perceived danger they constitute, most of these buildings can be converted to other uses other than the purposes for which they were originally built.
Ogunleye suggested that the government could confiscate abandoned and distressed buildings and convert them to meaningful investments that could add economic value to the lives of the citizens.
“For the sake of posterity, the government should ensure that these properties are put into proper use; sell those that need to be sold and lease out or concession others to private investors,” he added. (NAN)
LUC/MS/SA
Edited by Salif Atojoko
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